Written by The Banking Post
Index Agro Industries Ltd has declared a lower dividend for the fiscal year 2024–25 despite reporting steady profit growth. The company’s board has recommended a 12% cash and 5% stock dividend, compared to a 25% cash dividend in the previous year.
The feed manufacturer posted a profit of Tk 261 million in FY25, up 0.8% from Tk 259 million a year earlier. Its earnings per share inched up to Tk 5.52 from Tk 5.48 in the previous fiscal year.
According to the company, the modest growth was driven by higher sales and increased finance income amid persistent macroeconomic challenges. During the first nine months of FY25, revenue rose 5% year-on-year to Tk 3.13 billion, while finance income surged 46% to Tk 272 million, supported by higher deposit rates.
However, cash generation weakened during the year. The net operating cash flow per share dropped to Tk 10.26, down from Tk 14.77 in FY24, mainly due to slower customer collections.
The company’s annual general meeting is scheduled for December 15, with the record date set for November 9.
Following the dividend announcement, Index Agro’s stock price jumped 5.24% to Tk 72.30 on the Dhaka Stock Exchange on Thursday.
Index Agro, which produces poultry, fish, and cattle feed, was listed on the bourses in 2021 after raising Tk 500 million under the book-building method to finance new machinery and infrastructure.
